Noob question re RS

[murray t turtle]

I think in the long run you'd be better off to wean yourself from that RSI indicator. Train yourself to just look at the charts of the various sectors,XLI,XLB,TAN,etc to find the strongest sectors.

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Exactly;
except TAN has all time highs of over $300\oops\
2020 hi of $125 hi \oops.Good way to lose money on that uptrend\ bears may do OK.
RSI gives so many false signal in any kind of good uptrend so i seldom look @ it.
I have used it daytrading sometimes when you have to be out by 3:00CST, but i dont miss RSI @ all...........................................................................................

 

[KGTrader4]

Some good responses, thanks guys.

 

[Dollardogs]

Indicators are run by price data. Let that sink in. Readings could be overbought and oversold a long time and the price is still heading in the opposite direction. Instead, learn to read candlestick charts, pay attention to trends, support and resistance levels. That will give you a more objective idea of where that stock you are trying to analyze is headed as far as trend goes. Price is the purest data. Think about it, shares have actually, been bought and sold at certain price levels. Focus on that.

I hear you on that, but I have found it pretty reliable in knowing when a short is safe. X number of minutes over 70 or over 80, that bad boy is coming back down.

 

[SunTrader]

OS/OB readings are not ironclad take it to the bank every time after time.

No matter how extreme, no matter how long.

If anything more times than not that is a signal to go with not against.